The Government of Victoria's Partnerships Victoria approach focuses on the purchasing of service outputs with agreed quality, quantity and timeframe parameters. This approach differs from traditional public sector infrastructure procurement methods which usually focus on delivery of an asset or a specified service input.
Partnerships Victoria differs to traditional 'construct only' contracts by offering long-term service contracts with ongoing performance based payments, instead of upfront milestone payments.
As the focus of public private partnerships (PPPs) is on the long term, performance monitoring during both the construction and the operating phase is critical to make sure that expected value is being achieved.
To assess whether there is adequate supervision to ensure delivery of high quality infrastructure and services for the RWH redevelopment project, the audit evaluated:
• the state's involvement in the design and construction phase of the project
• arrangements to supervise the long term role of the private sector partner.